April 15, 2022: Heifer Inventory

There are many factors that influence dairy markets. Sometimes those factors are not as obvious as others. The most obvious factors, of course, are milk supply and demand. The most recent drastic example of this relationship was experienced in 2019 when the pandemic hit and virtually all food service was shut down, creating a huge shift in demand to retail that sent Class III and IV milk prices tumbling to their lowest since 2009. Subsequently, the Farmers to Families Food Box Program created huge demand for cheese and sent Class III skyrocketing, leaving Class IV behind  by sometimes as much as $10 per cwt less. Other factors are not as easily seen or defined and take longer for the effects to materialize. Heifer inventory is one of these factors. Read More